An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
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Tuesday, August 3, 2021
Germany 30-yr negative
Ok so if Germany “defaults!” on these does that mean YOU don’t have to pay the interest YOU owe THEM for the next 30 years? :p
Don’t they have any “bund sturmtruppen!” over there to deal with all zie “geld drucken!”?
There should be a smiley on that. It'll confuse some people
If you pay 240 for a bond and get 30 over ten years in interest and 100 redemption that implies a negative yield over time. You never get your money back.
If Germany defaults then the negative yield just gets more negative. You get even less money back.
There should be a smiley on that. It'll confuse some people
ReplyDeleteIf you pay 240 for a bond and get 30 over ten years in interest and 100 redemption that implies a negative yield over time. You never get your money back.
If Germany defaults then the negative yield just gets more negative. You get even less money back.